The global cooking oil market is set to witness significant growth, with estimates indicating a rise from USD 250.78 billion in 2024 to USD 306.92 billion by 2029. This represents a Compound Annual Growth Rate (CAGR) of 4.1% over the forecast period. The expansion of the market is fueled by several key factors, including a growing global population, rising disposable incomes, and evolving dietary habits. Additionally, edible oils find widespread applications in food processing, industrial sectors, and various forms of baking and cooking, further driving the market’s development.
Key Market Players
Several major players are leading the cooking oil market, including Wilmar International (Singapore), Cargill Incorporated (USA), and Bunge (USA). These companies are catering to the growing demand for various oils such as soybean, palm, sunflower, and olive oils. Their efforts in expanding operations in both developed and emerging markets are helping meet the global demand.
South America’s Growing Role in Soybean Production
South America is emerging as a critical hub for the global soybean market, which is pivotal in the production of cooking oil. According to the OECD-FAO Agricultural Outlook 2023–2032, global soybean production is projected to grow at a slower rate of 0.9% annually, compared to 2.2% growth in the past decade. A significant driver behind this trend is the practice of double cropping in South America, where soybeans are planted after maize or wheat. Brazil, the world’s largest soybean producer, is projected to increase production by 0.8% annually, outpacing the US, which will grow by 0.6% annually. Other important contributors include Argentina and Paraguay, with projections of 51 million and 12 million tons of output, respectively, by 2032.
In contrast, the production of other oilseeds like rapeseed and sunflower is growing at a slower pace due to land competition and regulatory constraints, particularly in regions like the EU and China.
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Regional Insights: Europe’s Key Market Position
Europe holds a significant share of the global cooking oil industry. The region’s strong demand across both domestic and food service sectors contributes to this position. Key players in the European market include Associated British Foods plc (UK), BORGES AGRICULTURAL & INDUSTRIAL EDIBLE OILS, S.A.U. (Spain), and Louis Dreyfus Company (Netherlands). These companies are actively expanding production capacities and implementing innovative solutions to meet the growing demand.
For example, Borges Agricultural & Industrial cooking oil recently inaugurated a USD 10.8 million seed oil extraction plant in Tárrega, Spain. This investment is part of a larger USD 25 million initiative aimed at boosting production capacity by 30% while minimizing environmental impact. The continued investments in sustainability and technological advancements suggest that the European edible oils market will experience robust growth in the coming years.
Sunflower Oil: A Major Segment of the Edible Oils Market
Among various types of cooking oil, sunflower oil is one of the leading segments. Extracted from the seeds of Helianthus annuus L., sunflower oil is a versatile product used in food, biodiesel, and animal feed industries. The oil’s light amber color and strong flavor make it a popular choice in cooking, and its nutritional profile adds to its appeal.
In recent years, sunflower oil production has seen steady growth. According to USDA data, global production reached 21.72 million metric tons in 2022/2023 and is expected to grow slightly to 22.13 million metric tons in 2023/2024. Russia and Ukraine are major producers, contributing a combined 31% of global production. The increasing global demand for sunflower oil is primarily driven by its extensive use in various culinary processes and processed foods.
Household Consumption Driving Market Growth
The household segment in the cooking oil market is growing at a significant pace due to the increasing population and rising incomes. As households demand more edible oils for daily consumption, this segment has experienced steady growth. According to data from the Government of India, domestic consumption of edible oilseeds has been increasing by around 10 LMT annually. This trend is attributed to the expanding population and increasing disposable incomes, which are driving the demand for edible oils. As production capacities increase and the availability of cooking oil rises, the household-use segment is expected to continue its upward trajectory in line with the global demand for cooking oil.
The global cooking oil market growth is driven by factors such as population growth, rising incomes, and shifting dietary habits. Key markets, particularly in South America and Europe, are contributing to the expansion of soybean and sunflower oil production, while innovations and investments in sustainability are paving the way for further advancements in production practices. As consumer demand increases, especially in households, the edible oils market is set to continue its upward growth trend through 2029 and beyond.